Directorate: Statistics & Economic Analysis
Sub-directorate: Economic Analysis
The price of local maize decreased by 1.3% and 1.4% respectively whilst the US maize price increased by 1.7%. The local maize price decreased due to inter-alia rand strength during the week, while the US maize price in- creased due to strong export demand from China. The price of local and in- ternational wheat increased by 1.7% and 1.2% respectively. The wheat price is higher internationally as US and Canada reduced production this year.
Dry weather conditions were also reported in Southern areas in Russia and in Kazakhstan, contributing to declined wheat production. Local and interna- tional soybeans increased by 0.5% and 1.1% respectively. The price of local and international soybeans increased by 0.5% and 1.1% respectively. De- mand for soybeans reached record levels last year and currently less supply is available whilst demand remains strong. The price of sunflower increased by 3.2% this week, local sunflower productions is lower than it was last year and global oilseed prices remain high. The price of local sorghum remained stable this week.
The rand appreciated against major trading partners, the rand appreciated by 2.9%, 2.4% and 1.5% respectively compared to last week. The US, Euro and Pound etc. were weaker as preference continues for riskier assets. Prices of goods and services also are increasing further than expected, fuelling infla- tion fears. Expectation of supply shortages are also fuelling anxiety in mar- kets.
The price of Brent crude oil increased by 5.4% this week compared to the previous week. Oil supply is still considered very tight and there is caution that the demand disruptions from the Covid pandemic may not be over.
Prices have also been boosted by worries of coal and gas shortages in China, India and Europe.
Spot price trends of major grains commodities
1 year ago
Week 42
(19-10-20 to 23-10-20)
Last week
Week 41
(11-10-21 to 15-10-21)
This week
Week 42
(18-10-21 to 22-10-21)
w-o-w % change
RSA White Maize per ton RSA Yellow Maize per ton USA Yellow Maize per ton RSA Wheat per ton USA Wheat per ton RSA Soybeans per ton USA Soybeans per ton RSA Sunflower seed per ton RSA Sweet Sorghum per ton Crude oil per barrel
R 3 578.6 R 3 445.6
$ 155.5 R 5 295.8
$ 179.21 R 8 283.60
$ 382.32 R 7 873.8 R 4004.00
$ 43,29
R 3 186.00 R 3 323.80
$ 205.86 R 5 765.80
$ 267.70 R 7 181.00
$ 446.13 R 10 480.20 R 4 230.00
$ 79.52
R 3145,60 R 3 277,60
$209,42 R 5 835,60
$271,65 R 7 220,40
$450,95 R 10 814,60 R 4 230,00
$ 83.78
-1,3%
-1,4%
1,7%
1,2%
1,5%
0,5%
1,1%
3,2%
0,0%
5,4%
National South African Price information (RMAA) : Beef
National South African Price information (RMAA) : Lamb
National South African Price information (RMAA) : Pork
Quantities of class A2 and A3 beef traded this week decreased by 3.0% and 38.2% respectively while increasing by 15.3% for class C2. The producer prices for class A2 and A3 increased by 0.2% and 1.1% respectively while the producer prices for class C2 decreased by 1.5%. The market prices for all classes decreased this week compared to the previous week, the price of class A2, A3 and C2 decreased by 1.5%,0.8% and 1.5% respectively.
The quantities of class BP and HP pork traded this week increased by 14.7% and 17.7% respectively whilst declining by 4.1% for class HO.
The producer prices for all classes increased , the producer price for class BP, HO and HP increased by 2.2% , 3.4% and 3.5% respectively.
Lamb traded this week decreased by 8.5% and 21.2% for class A2 and C2 respectively compared to the previous week whilst increasing by 9.8% for class A3. The producer prices for class A2 and A3 decreased by 0.1% and 2.6% whilst increasing by 5% for class C2. The market prices for class A2 and C2 increased by 1.1% and 3.2% respectively whilst decreasing by 5.2% for class CA3
Week 40 (04/10/2021 to
10/10/2021) Units Avg Purchase
Price Avg Selling Price Week 41 (11/10/2021
to 17/10/2021) Units Avg Purchase Price Avg Selling Price
Class A2 8 733 53.19 53.97 Class A2 8 467 53.27 53.17
Class A3 623 51.52 53.92 Class A3 385 52,08 53.49
Class C2 439 45.68 47.95 Class C2 506 45,16 47,23
Week 40 (04/10/2021 to
10/10/2021) Units Avg Purchase Price Week 41 (11/10/2021 to
17/10/2021) Units Avg Purchase Price
Class BP 9 256 26.49 Class BP 10618 27,08
Class HO 7 179 25.74 Class HO 6885 26,62
Class HP 6 799 25.94 Class HP 8005 26,84
Latest News Developments
The FAO Food Price Index (FFPI) averaged 130.0 points in September 2021, up by 1.2% from August and 32.8% on a year-on-year basis.
The latest rise of the FFPI was largely driven by higher prices of most cereals and vegetable oils. Dairy and sugar prices were also firmer, while the meat price sub-index remained stable. Market watch report by Mohamed A. El-Erian indicated that inflationary forces are not ending as prices of food and services continue their upward rise and that policy makers must do everything they can to rein in on inflation and boost supply.
Agri-SA and Agricultural Business Chamber (Agbiz) expressed concern about rising input costs in the agricultural sector. The organizations stated that the costs of direct materials, labour and other overheads continue their upward trajectory and that fuel costs are affecting agribusi- ness profitability. Christo van der Rheede of Agri-SA stated further that the costs of fertilizer, herbicides, packaging, diesel, electricity and la- bour, to name a few, are increasing rapidly, making it nearly impossible for many farmers to produce food sustainably. Agbiz Stated that ferti- lizer and agrochemical prices were more than 40% higher in October this year compared with the same period last year. Agri-SA is appealing to government and all other stakeholders to engage and intervene in efforts to reduce the costs of inputs and to promote local supply and use of input materials, instead of imports. Agricultural Business Chamber (Agbiz) says the planting season for South Africa's 2021/22 summer grains and oilseeds started positively in the eastern and central regions. The season has been met with favorable rains that naturally improves soil moisture, but the industry will remain under pressure amid the rising fuel costs
Energy transition holds greatest promise for growth, job creation and development. Small and medium-sized businesses have higher job inten- sity per kilowatt (kW) than most other generation technologies. This means that the job creation potential of a transition is enormous. The South African National Energy Association (Sanea), the report highlights that the country still has no overarching policy that offers an integrat- ed approach to the energy sector. No integrated energy plan or a gas plan had yet been finalized making it impossible to align these with oth- er key policies including the Integrated Resource Plan (IRP). This drives high levels of uncertainty in the market and discourages investment (foreign and local), hampering decision making and allowing parochial interests to slow progress because of conflicting stakeholder objectives.
For more information contact: Directorate Statistics & Economic Analysis (SEA) at HeidiP@daff.gov.za or 0123198194.
Source: SAFEX, Standard bank, Stats SA, Reuters, Red Meat Abattoir Association, FNB and Absa Bank, Engineering News.
Disclaimer: DAFF will not be liable for results of actions based on this price watch.
Week 40 (04/10/2021 to
10/10/2021) Units Avg Purchase
Price Avg Selling Price Week 41 (11/10/2021
to 17/10/2021) Units Avg Purchase Price Avg Selling Price
Class A2 7 244 82.89 81.83 Class A2 6628 82,79 82,73
Class A3 1 067 82.37 83.71 Class A3 1172 80,23 79,33
Class C2 593 64.56 67.52 Class C2 467 67,76 69,71
